State Auto Financial (STFC) Tops Q4 EPS by 6c, Revenues Beat

State Auto Financial (NASDAQ: STFC) reported Q4 EPS of $0.66, $0.06 better than the analyst estimate of $0.60. Revenue for the quarter came in at $441.2 million versus the consensus estimate of $381.87 million.

• Quarterly earnings of $1.85 per share
• Quarterly net income from operations1 of $0.66 per share
• Quarterly GAAP combined ratio of 93.8
• Quarterly SAP personal and commercial segments' combined ratio2 of 94.5
• Return on equity of 1.3%
• Book value per share of $23.00

STFC’s Chairman, President and CEO Mike LaRocco commented on the quarter and year as follows:

"We ended an otherwise challenging year with a strong quarterly result. Our fourth quarter 2020 personal and commercial lines’ 94.5% SAP combined ratio and 7.8% net written premium growth demonstrated our ability to grow profitability and included notable improvement in key areas, including our non-catastrophe loss ratio and expense ratio.

"For the year, our personal and commercial lines’ 103.6% SAP combined ratio included a catastrophe loss ratio of 14 points, which is 6.4 points higher than our five-year average. Our personal lines business produced a 106.8% SAP combined ratio, including 14.5 points of catastrophe losses. While net written premium in our personal auto line declined 5.9%, our homeowners business grew 23.6%. Our commercial lines business was profitable with an SAP combined ratio of 99.2% and net written premium growth of 12.7%. We also completed the rollout of products on our digital-only platform, State Auto Connect, with the launch of farm and ranch, workers’ compensation and middle market commercial.

"While our financial results for the year can be seen as falling short of our expectations, 2020 was a successful year and one in which our associates can take great pride. With the exception of an unusually bad CAT year, our underlying loss ratio was terrific, as was our strong growth. More importantly, I’m proud of the extraordinary efforts of our team, from Claims and Risk Engineering (CARE) and Service who delivered exceptional service to customers affected by storms and other catastrophic events throughout the country, to our sales teams who strengthened relationships with independent agents in the midst of a pandemic. Throughout the year, we always put family and community first and stayed true to our culture, our bond became stronger and we are positioned for continued progress and success in 2021."

For earnings history and earnings-related data on State Auto Financial (STFC) click here.

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